SBP to decide key policy rate on Sept 16

SBP to decide key policy rate on Sept 16

KARACHI: State Bank of Pakistan (SBP) will decide key policy rate for next two months on Monday, September 16, 2019. The present policy rate is 13.25 percent.

The central on Thursday said that the Monetary Policy Committee of the SBP will meet on Monday, September 16, 2019 at SBP Karachi to decide about Monetary Policy.

Later on, SBP will issue the Monetary Policy Statement through a press release on the same day.

In its meeting on July 16, 2019, the Monetary Policy Committee (MPC) decided to raise the policy rate by 100 basis points to 13.25 percent with effect from July 17, 2019.

The decision takes into account upside inflationary pressures from exchange rate depreciation since the last MPC meeting on May 20, 2019 and the likely increase in near term inflation from the one-off impact of recent adjustments in utility prices and other measures in the FY20 budget.

The decision also takes into account downside inflation pressures from softening demand indicators.

Taking these factors into consideration, the MPC expects average inflation of 11 –12 percent in FY20, higher than previously projected.

Nevertheless, inflation is expected to fall considerably in FY21 as the one-off effect of some of the causes of the recent rise in inflation diminishes.

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